Deal review: I think I got hosed and just need confirmation

Ask the Hackrs
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Hello,
Just got a 2021 Jeep Wrangler Rubicon 4xe PHEV lease. I spent all my time negotiating with various dealers nationwide to find the best discount, that I just stupidly didn’t bother with lease terms, money factor, etc. Partly because the 4xe is a new 2021 model and most dealers were just at MSRP, or just under. Took a while to find a set of dealers willing to go to invoice (especially in CA). Finally found 1 dealer that I got to $1K below invoice, and I was super excited about that, since that really was a great deal compared to others (in the Jeep forums).

So here’s my deal:
$67,040 MSRP
$63,085 Invoice
$1,000 less Invoice = $62,085 my starting price

On top of that, because its a PHEV, we get $9K off that applies to the lease ($7,500 Fed, $1,500 CA)

So for me, I’m happy since my Lease is basically on $53,085 for a $67,040 MSRP.

Didn’t even ask the dealer what the money factor is and didn’t even look at all the other charges as I figured they were just straight forward and didn’t think about mark ups. After spending a few days going through the agreements, I’m pretty sure they marked up MF and others so I’m paying $1,000s more than I should have had I even said anything.

In addition to applying the $9K rebates as a down payment, I also put $2K down to cover most of the drive offs
$609.38 1st mo
$316.00 Registration
$404.00 License
$8.08 Sales Use Tax
$827.57 Cap Cost Reduction Tax
$85 Doc Fee
$30 EV Fee
$8.75 CA Tire Fee

So that all nets out to $8,711.22 Capital Reduction

Adjust Cap Cost $53,373.78
Residual Value $42,905.60
Depreciation $10,468.18
Rent Charge $9,566.18 (I’m not even sure what this is)

Payment $556.51 + Tax $52.87 = $609.38 x 36 months, 10k/miles

Also see a note of Sales Tax $5,058.39 but I think that’s baked into the above. Los Angeles sales tax is 9.5%

Have no idea what the money factor or lease interest rate is, never asked and see nothing on the lease agreement that says it.

Also my credit is 830 so should be at Tier 1 rates.

I tried playing around in the calculator but since I didn’t know MF I couldn’t make it work.

I’m trying to see what the dealer marked up on me and how much they hosed me for.

From a payment perspective, I went in wanting below invoice pricing, and budgeted $20K on a 3 year lease and I’m basically there at $21,937.68 ($609.38x36), which is why I didn’t bother haggling over the details because I got what I wanted and what I could afford. But like I said these numbers like Rent charge and stuff seem high and feel like I’m probably paying $2k extra in just MF mark up alone.

Any input would be appreciated. Thanks.

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This is effectively the “interest” you’re paying as a result of the MF.

In this case, your mf was .00276. You’d need to compare that against what buy rate is to see how much it is marked up.

Keep in mind that the dealer didn’t hose you. It was all laid out in writing for you to review and you willingly agreed to it.

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You don’t even need to do a search here to get your input. Just logging in to Leasehackr forums will get you hundreds of recent posts in active threads about the 4xe Jeeps.

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Should you be at the base rate of Tier 1 or the marked up rate allowed under Tier 1? Having a great credit score makes you eligible for a deal at the base rate, it does not entitle you to a deal at the base rate. Many dealers mark up the mf every day on deals with buyers who fall into Tier 1. That’s why it’s best to verify these items first.

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Looks like 0.00203. You can ask on Edmunds not sure if it matters now.

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Effectively 1.75% interest in b/e markup/profit

So now you know: the 9k in rebates got eaten by the rent, and you put more money down.

Congratulations on your 4xe - you’ll be together for the next 3 years.

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Yeah that’s what it sounds like. I’m find with the $20K over the 3 years as that’s what I budgeted but yeah looks like I wasted that $9K rebate

Let me ask, could I pay off the lease with a one time payment now and avoid some of these extra costs? Or it is what it is and I have to pay them now?

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You could purchase the vehicle and avoid the rent charge but prepayment of the lease won’t get you there.

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“From a payment perspective, I went in wanting below invoice pricing, and budgeted $20K on a 3 year lease and I’m basically there at $21,937.68 ($609.38x36), which is why I didn’t bother haggling over the details because I got what I wanted and what I could afford. But like I said these numbers like Rent charge and stuff seem high and feel like I’m probably paying $2k extra in just MF mark up alone.”

Your monthly is 609.38 but don’t forget to add in the about $1500-1700 you paid upfront for drive offs. So your effective monthly was about 40-60$ a month more than that.

That’s like saying well I paid 45000 in drive offs so the payment is only 200 a month for my Ferrari. And I wanted to be in the $200 range.

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$2500 actually

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I certainly could be wrong, but based on the listed fees and payment, I couldn’t get it to line up until I cranked up the MF to .00293. Unless RV is now 64%? Was a little confused about that in recent discussions.

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Looks like you’re correct, 65% from Edmunds.

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Yeah, you got hosed. But that’s what car dealers are all about…

Hosed
Hosed1107×623 161 KB

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There is $1800 hidden in the marked up money factor, so if you got buy rate its about a $800 over invoice deal.

This dealer would never have been interested in doing this deal at buy rate so its more of a fantasy to assume that this deal should have been done that way.

Even at the marked up money factor this is still way below the market for California, enjoy the new 4XE you got a great deal

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He can flip it to Vroom in a month or two with a ton of equity i’m sure

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Yeah that’s where my focus was, from a starting point it’s the best deal in CA. Even now the same dealer went to $500 below and now at invoice a month later. So at least I’ll go three years with this and learn from my mistake on the next deal

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So if I purchased it now what would the amount look like? Would it be required lease payments plus residual value?

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Bro I scratched up my car a couple of weeks after getting it. We all do stupid things sometimes. Get in that cool car and just enjoy it.

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Roughly the adjusted cap cost.

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